China cuts key rates another 25 bps, RRR by 50 bps

    China's central bank cut its benchmark lending and deposit rates by a further 25 basis points to "further reduce the social cost of financing" while the reserve ratio for major financial institutions and for rural lenders was lowered by another 50 basis points to "maintain reasonably adequate liquidity in the banking system and guide steady moderate growth of money and credit."
    The People's Bank of China (PBOC) cut the benchmark one-year lending rate to 4.35 percent, its sixth cut since embarking on an easing cycle in November 2014 for total cut of 165 basis points. This year it has cut the rate by 125 points.
    The PBOC also cut the benchmark deposit rate by 25 basis points to 1.50 percent and said it would no longer set an upper limit on deposits for commercial banks and rural cooperative financial institutions.
    The cut in the reserve ratio for major financial institutions lowers the rate to 17.50 percent. The PBOC also cut the reserve requirement by 50 points for the three major lenders to rural and small businesses.
    The new rates will take effect on Oct. 24.

    www.CentralBankNews.info